Toronto-Dominion Bank Q1 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : So clearly, this capital market business is going to be topical and this quarter looks to be an anomaly. I'm just wondering if -- I mean, you've done this in the past to give a sense of what kind of a run rate for earnings. I know this is going back a few years, but $250 million a quarter is something more attainable? And that's going to dovetail into my real question.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Last couple of years, we've had a bit over $1 billion of earnings, so that does work out to about over $250 million. I'm just wondering are we -- can we at least replicate that performance in the past couple of years?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. Well, that kind of -- because we do have a guidance number of 7% to 10% or target I should say for the overall bank. And this is for Riaz as well to pipe up, but slower start. So I'm not surprised to hear you say you might be at the lower end of the range, but that's still a pretty heavy growth number we could average over the next 3 quarters to get to that 7%, but my math is 10% or 11% if -- capital markets. It just does what it normally does, then the other businesses have to step up. Is that what you have in mind as well? Or how do you see getting there?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Just a couple of quickies. Bob, you mentioned I think the mix of the business is about 70% global markets. As you build out, is that mix going to stay about 70% global markets? Or do you think that mix is going to change a little bit?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Okay. And then just as far as the revenue outlook, let's say, more immediately for your business, Bob, as opposed to kind of longer term, how much of that is what I'll refer to within your control versus just leaving the markets to kind of rebound so you kind of revalue, I guess, the marks on the inventory. Is that the right way to think about it or it's dependent on -- I guess, how much of it is in your control as opposed to outside of your control? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Okay. If I can just sneak one in for Teri. She's been awfully quiet on this call. Teri, the revenue growth quite nice and I'll think of it as the Canadian P&C proper, obviously, year-over-year nice spread or NIM expansion. Maybe just a little bit around the outlook for NIM. Maybe revenue growth in your segment or in that P&C segment specifically and the likelihood of operating leverage being positive, again, this year.